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You are somewhat misrepresenting what he's doing. From your link:
(emphasis mine)
So borrowing is actually going down under his plan. He's just shifting existing bonds (presumably backed by a tax revenue stream of some kind) from university buildings to highways.
In other words, he prioritized, and cut one area of spending in order to fund something else. The plan sounds entirely reasonable to me. Sure I would prefer that gov't would not borrow, saving interest, bonding attorneys, etc. but that is generally not the way it's done. I don't know about other states, but in my state (WA) that is how infrastructure is often funded. And we are virtually solid Democrat. Where's your thread complaining about my Gov. Jay Inslee (D, WA)?
A very high marginal tax rates will be destructive, move money and business elsewhere out of the USA, as will all your suggestions.
Back in 2008 the oil prices spiked. Then we had an oil boom. But for that we would be in very deep kimchi. My idea of radically raising the minimum wage would follow most of the same pattern as that move, cutting oil production deepens the recession failing a lot of loans fast, upping the minimum wage would contract the economy initially, the oil boom if my idea had been followed would have been accompanied by a restructuring of all our debts. 1/2 the current debt load in % GDP. And that would have set us up for economic good times. Now we still have to clear out the debt and that is going to be painful.
You screamed bloody murder when he tried to rein in Wisconsin sprawling public sector and they already have the highest overall tax burden of any midwestern state.
So when your traditional industries there like the paper production are hammered, GE continues to move all their medical to China and tourism was down from the financial crisis......your answer is to increase taxes?
In short, you seem opposed to any tightening of the belt on the public sector when things get tough for the private sector...and when the private sector gets smaller....you just increase the taxes on them further.
Not sure you are seeing the "end game".
The end game will be our children and grandchildren paying higher taxes to pay off the bonds with interest that Walker wants to pay for a basic operating budget. That is called, "kicking the can down the road."
They should decrease spending in other areas to offset the cost of the infrastruc
Walker plans to have the state issue $220 million in bonds for the new facility. ture. Government has taken more than enough from the American public, and it's about time for it to give something in return to them other than eternal cries of "gimme gimme gimme". What they take now on an annual basis is sufficient to build anything our hearts desire...if the right political choices are made.
What government is telling us now in the "pay up or we'll let your roads rot" paradigm is that all their other spending is a higher priority to them than infrastructure - every single other program means more to them. Remember that when they claim to "care about investing in our infrastructure".
This is the infrastructure that Walker prioritizes over University education.
Quote:
And Walker wants to borrow money to pay for a new Milwaukee Bucks stadium, which is expected to cost $500 million!
Sounds like he is reducing the overall borrowing by the state.
Under the Republican governor's plan, bonding for transportation would rise by about 30%, but the state's overall borrowing would drop.
Well when Walker campaigned last fall, he said WI faced a surplus. So it seems his borrowing went up substantially since last fall.
Quote:
"The most recent fiscal year just ended with a cash balance of some $517 million," Walker said. "And the next state budget will begin with a surplus of over half a billion dollars -- $535 million to be exact. That means we can invest in our priorities."
Interesting, Nj had as governor, jon corzine. JC headed goldman sachs, he was tapped to be HRC's sec of the treasury, Biden and Obama also sought his advice on economic matters and hoped to have him head the treasury. JC's credentials were inpeccable when it came to finanaces. JC also had both houses dominated by dems. So of course with the world's leading financial guru in charge and both houses of his party, NJ should have been the center of excellence for economic turn around. If JC couldn't do it who could???????
So is NJ that shining example of Dem financial guru magic. Is NJ THE stare to emulate? NO ir is not!
Isn't the governor of NJ a Republican? Is this republican not taking responsibility?
Back to the original question. I would say yes, if the interest rate in less than the projected average inflation rate over the useful period of payoff. To give an example: SANDAG, the San Diego MPO, assesses a voter approved 1/4% sales tax that supported a fund for county transportation improvements. There was a period after the doc com bubble burst well past 9-11 wherein they could borrow at less than 1% fixed via revenue anticipation loans yet were getting 4.5% via safe investments on their existing pot. Borrowing allowed building well ahead of schedule during a period of low bidding due to recession profitably because of the inverse interest rate spread. Established a high class freeway and trolley system for the county.
Over the last 3-4 years, Ebay had been heavily criticized for heavy borrowing while having 3 Billion in cash on hand. Finally the CEO said, "look, we are getting this money at 0.15"%, why pay cash?"
It's time for the government to take ownership of all private businesses and raise wages and prices as the dog chases it's tail!!!!
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